From Nasdaq: 2025-01-17 00:38:29

Teradyne (NASDAQ:TER) could benefit from the generative AI trend, with its stock outperforming the S&P 500 by 2% since early 2024. The company’s automated test equipment (ATE) sees strong demand from Cloud AI products, with semiconductor sales growing by 60% year-over-year, especially in the memory segment for AI applications.

While Teradyne’s semiconductor business is thriving, other segments like Robotics and wireless face challenges. Overall revenue is expected to grow by 5% in 2024. However, the company’s focus on AI chips and semiconductor test solutions, coupled with projected industry growth, could drive revenues higher in the near term, with consensus estimating 20% growth for FY’25.



Read more at Nasdaq: Can AI Tailwinds Drive Teradyne Stock HIgher?